Collision Coverage: What It Is and Who Needs It
Collision coverage pays to repair or replace your vehicle when you hit another car, object, or roll over—regardless of who's at fault.
Find Carriers That Accept PointsWhat Is Collision Coverage Insurance?
Collision coverage pays for physical damage to your vehicle when you collide with another car, hit a stationary object like a guardrail or pole, or roll your vehicle over. It applies whether you're at fault or not—even if you rear-end someone at a red light or slide into a ditch on ice. The insurance company pays the repair cost minus your deductible, up to your vehicle's actual cash value. If repair costs exceed your car's value, the insurer declares it a total loss and pays you the market value minus your deductible.
Who Needs Collision Coverage Insurance?
You need collision coverage if you're financing or leasing your vehicle—lenders require it to protect their asset until you own the car outright. Drivers with recent violations should carefully weigh the cost of collision premiums against their vehicle's declining value, but dropping it prematurely can leave you exposed during the exact years your accident risk is statistically highest.
How Much Does Collision Coverage Insurance Cost?
- Your claims history—filing multiple small collision claims can raise your rates more than one large claim, and some insurers surcharge collision coverage specifically after a pattern of at-fault incidents.
